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Original poster

Question about universal credit

74 replies

purpleme12 · 04/10/2023 14:56

I will be applying for universal credit. I'm on tax credits.

I know that you get the transitional protection so you're not paid less.
But if you wanted to could you choose not to have that transitional protection? And just have what UC would pay you?
Do they tell you what you'd get on UC? And then tell you what you're actually getting because you've been on tax credits?

Also what questions do you have to answer?
Do you have to show them your bank statements?
I am kind of expecting to perhaps show them how much is in my bank but I'd just rather not share what I spend my money on 🤣

OP posts:
Original poster
purpleme12 · 04/10/2023 19:08

@Babyroobs do they want to see what you spend your money on?
Or just proof of how much money you've got?

OP posts:
CornishTiger · 04/10/2023 19:26

Wait until after you’ve been paid to apply for UC.

Original poster
purpleme12 · 04/10/2023 19:32

I'm going to apply next week. So about 2 weeks after I've been paid

OP posts:
throughgrittedteeth · 04/10/2023 20:05

@purpleme12 it was similar info to TC, the only think so far that I need to give evidence for is my rental agreement and a utility bill. Of course as another person said, there's still time for them to ask for other things but there isn't anything on my online "to do" list to send them other than the rental agreement and utility bill.

Original poster
purpleme12 · 04/10/2023 20:07

Ok thanks. I don't rent so will be utility bill for me

OP posts:
Alltheyearround · 04/10/2023 20:27

What happens if you have savings of less than 16k but capital of more?

We have 2 small rental properties (our long term aim is for those to fund old age as we have no pensions so this is what we decided to do as long term investments).

TC have had no issue with this, we have fully declared any and all 'income' (in reality it all goes on repayments).

I earn 8k per year (p-time due to disability and child with disability), we get DLA for DS (13) but not sure if he will qualify for PIP which seems more stringent.

DH earns roughly 16 to 18k I think, he's self employed so it varies.

We have relied on Tax credits and the boost from disability component and just about get by.

DLA money helps if we run short for energy bills etc but is otherwise saved for expensive private assessments needed for his EHCP, therapy, tribunal etc whatever he needs really, and some saved for his future under his name.

I'm really worried that UC will be hard work to manage, and that we won't be eligible.

We are only just afloat financially. DH transferred to Self Employment as we have so many meetings and appointments for DS we couldn't do it any other way.

We are pretty frugal but I am worrying that we are about to go under.

If we had to sell one of the flats we would be seriously under provided for in old age - even now we think we will probably have to work at least part time when we are older.

Lougle · 04/10/2023 20:47

@Alltheyearround unfortunately, it's counted as savings:

"Own Other Property
Property other than where you are living
Property that you own, other than where you live, counts as savings when means-tested benefits are calculated. This means that such property needs to be valued and an amount entered into the calculator.

The valuation to enter
For the purposes of calculating the amount of that property which counts as capital, you should take the current market value ('surrender value') of the property, and reduce the amount by 10% if there would be a cost involved in selling the property. This is because the value of capital taken into account in the means test is reduced by 10% to cover any expenses involved in selling.

You should then deduct from the remaining amount any debts secured on the property such as a mortgage. The amount left is your capital to be taken into account when calculating your means-tested benefits. If there are no selling costs, and no debts secured, then the entire amount is counted as capital."
www.entitledto.co.uk/help/own-other-property#:~:text=Property%20that%20you%20own%2C%20other,amount%20entered%20into%20the%20calculator.

Alltheyearround · 04/10/2023 21:30

Oh Bum.

Thanks @Lougle I'd read conflicting things, but I did suspect this might be the case. Better start planning. Not had a transfer letter yet just a leaflet through the post but I suspect it will come in the next few months.

A few more years of DLA, but after that god only knows.

I have had my fortune told in younger days and both said I would never be rich but never be poor, so let's raise a cup of tea to that and hope those lines on my palm prove true!

Am retraining currently so I could do some part time on top of my part time,
CFS willing.

Fingers crossed for all the others waiting to transfer from TC.

Hairyhat · 04/10/2023 23:57

I am so worried. I am barely managing now. I can't manage on less and have the 5 week wait. I don't understand the TP discussed above? I don't get housing benefit and my colleague says this means I will get less award so working overtime will penalise me? That can't be true?

Babyroobs · 05/10/2023 00:38

Hairyhat · 04/10/2023 23:57

I am so worried. I am barely managing now. I can't manage on less and have the 5 week wait. I don't understand the TP discussed above? I don't get housing benefit and my colleague says this means I will get less award so working overtime will penalise me? That can't be true?

You won't get less.
You can take an advance payment to tide you over the 5 week wait.
You may be better off if you don't currently get housing benefit as on UC you will get a rent element if you pay rent.
UC is a top up benefit. the more you earn the less Uc you get but each additional pound you earn only reduces your UC by 55p so you would still end up better off by working more hours or doing overtime unless you have huge commuting costs.

Hairyhat · 05/10/2023 00:44

I don't rent though. I'm lucky enough to own my home but my DC dad died and I'm on my own now with single low income. Really happy to hear I can do overtime when it's available as I do now. Still frightened of the 5 weeks. Can I apply for free school meals does anyone know? And is there any other help UC claimants get like council tax reduction? I already get 25% off for being single adult.

Original poster
purpleme12 · 05/10/2023 02:06

@Hairyhat you can Google eligibility for free school meals it's on the government website. But it's hard to qualify for free school meals if the parent is working.

If you're on a low income you may qualify for more reduction in council tax. Each council is different with that though. But you can call them and they can tell you and if they say you might be eligible you can then apply to see.

OP posts:
Hairyhat · 05/10/2023 09:20

Thank you @purpleme12

ginandtonicwithlimes · 06/10/2023 09:15

Alltheyearround · 04/10/2023 20:27

What happens if you have savings of less than 16k but capital of more?

We have 2 small rental properties (our long term aim is for those to fund old age as we have no pensions so this is what we decided to do as long term investments).

TC have had no issue with this, we have fully declared any and all 'income' (in reality it all goes on repayments).

I earn 8k per year (p-time due to disability and child with disability), we get DLA for DS (13) but not sure if he will qualify for PIP which seems more stringent.

DH earns roughly 16 to 18k I think, he's self employed so it varies.

We have relied on Tax credits and the boost from disability component and just about get by.

DLA money helps if we run short for energy bills etc but is otherwise saved for expensive private assessments needed for his EHCP, therapy, tribunal etc whatever he needs really, and some saved for his future under his name.

I'm really worried that UC will be hard work to manage, and that we won't be eligible.

We are only just afloat financially. DH transferred to Self Employment as we have so many meetings and appointments for DS we couldn't do it any other way.

We are pretty frugal but I am worrying that we are about to go under.

If we had to sell one of the flats we would be seriously under provided for in old age - even now we think we will probably have to work at least part time when we are older.

UC is strict. Most people on there don't have much savings. You didn't seriously think they would allow you to claim with your rental properties?!? You will probably get protection for a while then you will have to sell those properties and live off the proceedings. You will be provided for old age better than many on UC.

Bleuwich · 06/10/2023 16:23

You lose the protection if you move before receiving the letter…protection means you won’t get less money for the 12months so even with deductions they would top it up to the amount you got on tax credits. If you were to be entitled to more on universal credit you would get that amount so you have nothing to lose by having the protection.

Original poster
purpleme12 · 06/10/2023 16:40

Bleuwich · 06/10/2023 16:23

You lose the protection if you move before receiving the letter…protection means you won’t get less money for the 12months so even with deductions they would top it up to the amount you got on tax credits. If you were to be entitled to more on universal credit you would get that amount so you have nothing to lose by having the protection.

A poster above implies that that's not necessarily the case about getting the same amount?

OP posts:
fuzzyduck1 · 06/10/2023 19:30

Your DH should make his own claim, I think
Even if he receives no money his National Insurance stamp should be paid towards his state pension & other benefits if he is unable to work

SUCkythings · 06/10/2023 19:32

You do not get protection. They’ve given me nothing, come up with lots of reasons why it’s my fault they’ve given me nothing and totally stressed me out.

Original poster
purpleme12 · 06/10/2023 19:34

SUCkythings · 06/10/2023 19:32

You do not get protection. They’ve given me nothing, come up with lots of reasons why it’s my fault they’ve given me nothing and totally stressed me out.

That's sounds bad 😞
Did you used to get tax credits? Why've they said you wouldn't get anything?

OP posts:
fuzzyduck1 · 06/10/2023 19:40

Suckythings
How do you live on nothing ?
You should receive NI if you are not able to work
Have you checked your NI record ?

Original poster
purpleme12 · 06/10/2023 19:41

I thought suckythings meant she got nothing on universal credit. Not that she lives off nothing

OP posts:
ginandtonicwithlimes · 06/10/2023 20:28

fuzzyduck1 · 06/10/2023 19:30

Your DH should make his own claim, I think
Even if he receives no money his National Insurance stamp should be paid towards his state pension & other benefits if he is unable to work

It has to be joint if they live together. Need to claim as a couple.

Ostryga · 07/10/2023 09:24

Bleuwich · 06/10/2023 16:23

You lose the protection if you move before receiving the letter…protection means you won’t get less money for the 12months so even with deductions they would top it up to the amount you got on tax credits. If you were to be entitled to more on universal credit you would get that amount so you have nothing to lose by having the protection.

Transitional protection is an element added to your UC claim. However this is before any deductions from wages, or other elements that are taken £ for £. It does not guarantee the exact same amount you are receiving.

Biancabee · 15/12/2023 17:44

Hi Everyone , Universal credit has suspended my claim , claiming that they can’t verify my housing , although I sent them all the information they asked me for , the case worker has sent my claim over to the decision maker, and told me I have to pay back the housing benefit element , if they can’t verify my housing , it’s been 3 weeks and I haven’t heard anything back , I’m on maternity leave and due to start work next week , I could potentially lose my job and housing , is anyone else going through somethiNg similar?

Babyroobs · 17/12/2023 15:37

Biancabee · 15/12/2023 17:44

Hi Everyone , Universal credit has suspended my claim , claiming that they can’t verify my housing , although I sent them all the information they asked me for , the case worker has sent my claim over to the decision maker, and told me I have to pay back the housing benefit element , if they can’t verify my housing , it’s been 3 weeks and I haven’t heard anything back , I’m on maternity leave and due to start work next week , I could potentially lose my job and housing , is anyone else going through somethiNg similar?

What is your housing situation - is it private rent? Anything unusual like renting form a close family member? Did you sent them your tenancy agreement?